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Lawrence, Indiana: Rising Home Values Amidst Stable Ownership in a Suburban Setting
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lawrence, Indiana, a suburban community in Marion County near Indianapolis, has experienced significant changes in its housing market over the past decade. From 2013 to 2022, the city saw a decline in homeownership rates coupled with a substantial increase in average home prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Lawrence gradually decreased from 66% in 2013 to 63% in 2022. During this same period, the average home price rose dramatically from $120,420 to $252,663, representing a 109.8% increase over nine years. This inverse relationship between homeownership rates and home prices suggests a changing landscape in the local housing market.
The interplay between federal interest rates and homeownership rates in Lawrence follows a general nationwide trend. From 2013 to 2016, when interest rates were historically low (0.11% to 0.40%), homeownership rates declined from 66% to 61%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 61-62%, possibly indicating that some residents rushed to purchase homes before rates increased further.
Renter percentages in Lawrence have generally increased as homeownership rates declined. The proportion of renter-occupied housing units rose from 34% in 2013 to 37% in 2022. Average rent prices showed some volatility during this period, starting at $1,195 in 2013, peaking at $1,200 in 2014, and settling at $1,163 in 2022, representing a modest overall increase of 5.7% from 2013 to 2022. This relatively stable rent growth, compared to the sharp increase in home prices, may have contributed to the shift towards renting for some residents.
In 2023 and 2024, Lawrence continued to see growth in average home prices, albeit at a slower pace. The average home price reached $257,565 in 2023 and further increased to $261,410 in 2024, representing year-over-year increases of 1.9% and 1.5% respectively. Concurrently, federal interest rates rose dramatically, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slowing pace of home price appreciation.
Looking ahead, predictive models suggest that average home prices in Lawrence may continue to rise, but at a more moderate pace over the next five years. Assuming current trends persist, average home prices could potentially reach around $290,000 to $300,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,300 to $1,350 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Lawrence has experienced a shift towards renting, with homeownership rates declining as average home prices have substantially increased. Despite this, average rent prices have remained relatively stable, growing at a much slower rate than home prices. The recent slowdown in home price appreciation, coupled with rising interest rates, suggests a potential stabilization of the housing market in the coming years.
